Largest Commodities Trader Glencore Expand Cotton trading

Largest commodities trader, Glencore (0805), to expand into cotton trading suffered a setback after it lost money in the first half and fired the leader of its cotton team.

The Financial Times reported yesterday that the Swiss-based firm last week dismissed Mark Allen - previously with Hong Kong- based Noble Group - as the head of cotton.

The FT says the loss comes after a tumultuous year for cotton, which trebled to record levels above US$2 (HK$15.59) a pound in March amid supply disruptions in India and Pakistan.

Prices then collapsed. Trading around May and July cotton futures has drawn the attention of market surveillance staff of US Commodity Futures Trading Commission.

Earnings before interest and tax in agricultural trading fell more than 97 percent to US$2 million in the second quarter from US$90 million in the first quarter.